In a recent statement, the Central Bank of China has stated that all cryptocurrencies are illegal and the government should ban them as soon as possible. Not only their government, but the authorities there want the whole cryptocurrency industry to collapse. According to Chinese officials, all bitcoin-related transactions are not valid and one cannot circulate them in the market.
China Considers All Crypto Transactions as Illegal
The Central Bank of China claimed that all cryptocurrency-related transactions are illegal and government must ban them as soon as possible. However, this is one of the strongest possible signals that the country has sent to crack down on the cryptocurrency industry.
Besides that, the People’s bank also stated all Bitcoin and Tether transactions are not fiat money. Henceforth, no one can circulate them in the market. All crypto transactions including the offshore exchange ones are illicit financial activities.
Bitcoin’s Rate Falls after China’s Statements
As soon as this statement circulated, Bitcoin dropped as much as 5.5 percent on Friday. Moreover, the Chinese government also responded to the signs that stated that miners are disguising their activities just to stay in business. The statement comes, as global markets grow progressively anxious over a debt crisis concerning property developer China Evergrande Group. Although the cryptocurrency market has not accelerated that much, there are a lot of people who invest in them. Businessman Elon Musk, popularly known for his interest in cryptocurrency has also stated that this is the future of money. However, it is not of great value in recent times, but crypto is the future of money.
What is the Current Status of the Crypto Market?
Cryptocurrency Exchange Luno, Singapore’s, Asia Pacific head, Vijay Ayyar has expressed his concern over China’s recent statement. However, this is not the first time that the Chinese government has come up with such a statement. They have also cited several cons of making cryptocurrency transactions in the past. Ayyar also said that this statement from the Central Bank of China has created a very nervous environment in the crypto market. Therefore, any comments on this nature will lead to a sell-off in risky assets. Besides that, the country’s economic planning also suggests that they need to urgently root out crypto management as the clampdown is important to meet carbon targets.